RBI warns of cautious monetary approach due to persistent food price inflation concerns.

The Reserve Bank of India (RBI) has warned that a cautious monetary policy approach may be needed due to the potential for high food prices to spill over into general price inflation. Food price increases are becoming less transient and the RBI is concerned that if left unchecked, they could lead to a significant rise in core and headline inflation, undermining consumer and business confidence. The central bank has noted that food price pressures have become highly persistent and have the potential to jeopardize the ongoing disinflation process and policy credibility.